Buy The Pullback In Origin

Posted on | by Todd | Leave a Comment on Buy The Pullback In Origin

Origin Energy has been trading in a broad range between $6.70 and $8.10 over the last four months.

We recently took profits for client portfolios at $8.00 and are currently looking for a retracement into the $7.50 area to re-enter long positions.

The recent weakness in crude oil has had a dampening effect on various energy names. However, we feel Origin’s natural gas assets will keep the share price fairly well bid over the medium to longer-term.

Origin

 

Iron Ore Slips Below $60.00

Posted on | by Todd | Leave a Comment on Iron Ore Slips Below $60.00

Spot prices of Iron Ore fell again overnight  dropping to a fresh seven-month low. The 62% grade was down over 2.5% to close at $57.02 per ton.

During the month of May, Iron Ore dropped over 17%, extending its decline from the multi-year high of $95.00 last traded in February.

Mining names BHP, RIO and FMG are all under pressure in early trade losing more than 1% each.

FMG has reached an eight-month low of $4.70. We see the next downside targets on Rio and BHP at $59.50 and $22.50, respectfully.

Rio Tinto

BHP

Fortescue Metals

 

US Financials – Goldman Sachs

Posted on | by Leon Hinde | Leave a Comment on US Financials – Goldman Sachs

Regular readers of the blog will recall the Goldman Sachs post we made on the 19th May 2017, (the post referenced the downward channel GS was tracking).

In the last few trading sessions, the stock rallied to the resistance within the channel and has now moved sharply lower in overnight trade. 

Goldman Sachs was down 3.3% and was the worst performing Dow Jones stock in the overnight session.  As the US reflation trade loses momentum, the bounce in the US financials has met renewed selling pressure at “lower high” levels.

The chart below shows Goldman Sachs’  sharp reversal.

Chart – Goldman Sachs
Chart – JPM